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Hi- We are a military family who purchased a home when we moved to our current duty station. My husband is up for promotion and we may be moving in a year. Currently, we have a 30 yr. fixed rate mortgage of 6%. Our payment is $ 1123 per month. We are unsure of our status, but can’t stand the thought of not moving and not being able to get in on a lower interest rate. Also, my husband read that military families should consider ARM loans. Is this a good idea? Everything we’ve ever heard about ARMs has been negative. Thanks in advance for your honest advice.

2 Thoughts on Military Family- Should we refinance?
  1. Reply
    jlf
    February 12, 2014 at 10:21 am

    Unless you’re going to keep the house for at least five more years, a refi is not advisable. Wait till you know if you’re staying put. And STAY AWAY from ARMs.

  2. Reply
    hmmm
    February 12, 2014 at 10:57 am

    Never an ARM, unless you are a real estate pro.
    You didn’t say how long you have been in your house, so I just plugged in the current rate of fixed at 5% and re-fi is approximately $ 1030 per month (assuming a loan of $ 187,306 plus $ 2,000 in closing costs).

    It will take you approximately 2 years of payments to reduce the mortgage loan back to what it is now (recapturing your closing costs).

    Only you can make that decision, but please do not get an adjustable. it is almost the same rate as a fixed – -go look at bankrate.com

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